Cumberland Council is collaborating with a credit union in a bid to encourage both saving and safe borrowing.

The council is working with Whitehaven and Egremont District Credit Union (WEDCU) on the pilot scheme, and invitations will be extended to 50 residents from the former Copeland borough.

These participants will be guided to save a minimum of £5 monthly for six months, and will be awarded a £100 bonus in month seven.

Cllr Lisa Brown, Deputy Leader of Cumberland Council, highlighted the scheme’s aims to stimulate savings habits amongst those who usually find it difficult to save.

She said: "We hope this scheme will encourage people who don’t usually save to do so.

“Financial resilience – ‘rainy day’ money - is really important. Our staff are seeing more people with low incomes, no savings and increasing costs.

"Through this scheme we can refer them to the credit union and offer a real financial incentive for saving.”

Whitehaven and Egremont District Credit Union (WEDCU) also offers participants an opportunity to borrow at reasonable rates, presenting an escape from high-interest borrowing methods such as loan sharks.

Nikki Bates, development manager at WEDCU, praised the initiative.

She said: "This is a fantastic opportunity for people in our local community to get support in learning good money habits.

"It's not easy to save, especially with the current cost of living crisis. This scheme, funded by the council, shows just how much we can support people by working together.

“With each client, we conduct a full budgeting review, and sign them up as a credit union member. We can also point them towards other agencies who could help them in different ways."

The project also includes a 'refer a friend' plan, offering members a £25 bonus for introducing a new recruit to the credit union.